Below is a brief excerpt from complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email email@example.com
Retail meat department sales increased 20.7% YOY for the week ended May 24, while volumes grew 5.1% according to 210 Analytics.
Meat sales have outpaced overall grocery store sales as well as edible categories during the COVID-19 outbreak, as seen in the following chart.
Year to date through May 24, meat department sales were up 24.7%.
That represents a volume growth of 1.2B pounds of meat and poultry and $5.8B in sales. Ground beef sales have grown more than $1B YOY.
Pricing has been well above volumes during the COVID-19 outbreak, with the week ended May 24 price/mix 15% points above volumes. Pork and beef dollar share has been elevated while poultry is lower.
For volume share, pork is up significantly while poultry and beef are down. Beef volumes were ahead until supply chain shortages pulled it lower. In the four weeks ended April 19, ground beef penetration of US households increased 7% points to 49%, according to IRI. The average household spent $5 or 30% more on ground beef.
Millennials were the biggest driver of growth. In 2019 Baby Boomers represented 35% of spending on meat, followed by Generation X at 32% and Millennials at 23%.